Riffrag Business & Finance Report

World Food Organization (FAO) estimates that world tea prices in 2010 expected to be stable after reaching record highs in 2009 that based on composite price reached 3.18 dollars per kilogram.

FAO’s estimates of the information presented in the FAO issued some time ago, said Agriculture Attache Embassy Rome, Dr. Erizal Sodikin, the correspondent Between London, Wednesday.

According to FAO, world tea prices for this type of black tea to reach record highs in 2009. Based on the composite price reached 3.18 dollars per kilogram, far higher than the average price of tea in 2008 which only reached 2.38 U.S. dollars perkilo.

Dr. Erizal Sodikin, estimates that the increase is mainly caused by the drought in some major producing countries such as India tea, Sri Lanka and Kenya.

According to the Secretary of the Intergovernmental Group on Tea FAO, Kaison Chang, a few countries like India will not bernjanji plantation area expanded beyond what they already planted, it aims to maintain a balance between supply and demand of the tea world.

In the FAO statement also explained the need for high tea in the middle of a global recession now this is caused by drinking tea is a habit of spending per household is relatively small.

Erizal Sodikin said that it pulled from this report that unlike in developed countries, world tea prices are higher in developing countries will affect the market price of tea in reteil.

For example in September 2009 in India the average price of tea in the market price reteil reached 15 percent higher than the same month in 2008. In Pakistan in the same period in the market price of reteil increased about 12 percent.

Year 2010 is expected to jump in world tea prices will decline due to weather conditions return to normal for the production of this tea Chang.